Current & Realized Investments
Harlan Residences at Hillview
Hollywood, CA
Multifamily
Strategy: Value Add
Investment Type: Co-GP Investment
Harlan Residences
Principals of Pierside Capital partnered with a Texas based family office and institutional equity partner to purchase and renovate the Harlan Apartments in Hollywood, California. The property is located on Hollywood Boulevard and has 54 multifamily units and 9,000 sf of retail on the ground floor and basement. As part of the transaction, we partnered with a local sponsor to execute the business plan which called for extending the retail tenants to long term leases, renovating the apartment units, and bringing rents to market rate on the apartment units. The total project cost including the renovation budget was approximately $25,500,000. Upon stabilization, the project achieved a $29,400,000 valuation. The project is located in an irreplaceable location and the investor group intends to hold the asset for cash flow for the next 5-10 years.
Montreal Beach Resort
Cape May, NJ
Hospitality
Strategy: Value Add
Investment Type: Co-GP Investment
Montreal Beach Resort
The Montreal Beach Resort is located in iconic Cape May, New Jersey situated with unobstructed views of the Atlantic Ocean. Principals of Pierside Captial arranged for the recapitalization of the Montreal Beach Resort in 2023 by bringing in new senior debt and a group of ultra high net worth investors to complete the recapitalization. As part of the recapitalization, our group purchased approximately 35% of the equity in the hotel and received a portion of the profit participation, or carried interest, in the asset. Our acquisition basis in the project is approximately $26,700,000 vs. a refinance valuation of $42,500,000. The hotel produces approximately $4,300,000 of net operating income per year and is well regarded amongst visitors and locals alike. The operating partner for the Montreal Beach Resort is Madison Resorts, LLC; a local hotel owner-operator. In addition to the 70 room hotel, the property has several other income producing amenities including a roof top bar with live music during the high season, Harry’s Bar & Grill, and an on-site wine store called The Wine Cellar which offers a full array of local and imported beer, wine, and alcohol for resort guests a full liquor license open to the public. The project was built in the 1960’s and underwent a modernization upon acquisition in early 2021 by the new ownership group. Also on the site is a historic 3,000+ SF Victorian style house that is in the process of being converted into additional guest rooms under the Montreal Beach Resort reservation system.
Randolph Land Redevelopment
Randolph, NJ
Mixed-Use
Strategy: Development
Investment Type: Co-GP Investment
Randolph
Principals of Pierside Capital, along with an ultra-high net worth individual, co-invested alongside an operating partner in a 60-acre parcel of land in Randolph, NJ that sits just 45 miles west of Manhattan. The property was purchased as an REO asset from a national lender for $12.25MM. The site is being redeveloped into a mixed-use project with a predominant housing element along with an event center. Portions of the property are being sold to a national homebuilder while the sponsor plans to develop and eventually build the complimentary event center upon municipal approvals.
Madison Wildwood Crest
Wildwood Crest, NJ
Hospitality
Strategy: Value Add
Investment Type: Co-GP Investment
Wildwood Crest
The Madison Wildwood Crest is a 110 key oceanfront hotel located in Wildwood Crest, New Jersey. The property underwent a significant upgrade including the demolition of the lobby, new outdoor pool area, room renovations, and rooftop event space. The hotel is adjacent to a large open public space that hosts concerts, events, and July 4th fireworks every year. As part of the renovation, the hotel added a restaurant and will also have on-site food trucks serving up unique dishes to guests and the public. The principals of Pierside Capital purchased a minority controlling interest in the asset in 2023. This particular hotel is also operated by Madison Resorts, LLC and has “doo-wop” themed architecture and design. The hotel is currently open and beginning to welcome guests. We anticipate that the project will be refinanced with permanent debt in late 2024 or early 2025.
Royal Hawaiian Resort
Wildwood Crest, NJ
Hospitality
Strategy: Value Add
Investment Type: Co-GP Investment
Royal Hawaiian
The Royal Hawaiian is an 88 key hotel located adjacent to the Madison Wildwood Crest property. Like many hotels in this area, it has suffered from a lack of investment to keep up with the evolving needs of hotel guests. With ocean views from every room, the hotel does not lack a great location but needs some capital to tap its full potential. The group of investors that purchased the Madison Wildwood Crest project also purchased the Royal Hawaiian. The business plan includes renovation of the rooms and common area, and consolidating operations with its new sister property, Madison Wildwood Crest. The advantage to purchasing the hotel next door include operating efficiencies and the ability to offer a slightly different price point to guests looking for an extended stay product. The hotel will also be dog friendly and operate under the Madison Wildwood Crest reservation system. It is anticipated that some unused areas will be converted to additional hotel rooms to bring the combined operations of the Royal Hawaiian and Madison Wildwood Crest to 200 rooms which would result in the largest hotel operation in southern New Jersey.
Troon Ridge
North Scottsdale, AZ
Residential
Strategy: Special Situation
Investment Type: Direct Investment
Troon Ridge
Principals of Pierside Capital purchased a 4,041 sf investment property in the highly coveted gated community of Troon Ridge Estates in Scottsdale, AZ in February 2022 for $1,100,000 in a purchase leaseback transaction. The sellers of the property received cash at close, a two-year lease on the property, and an option to purchase the property back from Pierside Capital at a fixed strike price over the term of the lease. If the sellers do not execute the purchase option, Pierside Capital has the right to sell the property on the open market. The property value is estimated at $1,800,000 - $1,900,000 by Pierside Capital as of Q1 2024
Pinnacle Peak Reserve
North Scottsdale, AZ
Residential
Strategy: Value Add
Investment Type: Direct Investment
Pinnacle Peak Reserve
Principals of Pierside Capital purchased an investment property in March 2020 for $391,000 and completed interior and exterior renovations to push rents and fix deferred maintenance items. In July 2023, affiliates of Pierside Capital secured a new tenant for the project. The investors receive 100% of net cash after all expenses. At year end 2023, the investors received an annualized distribution of 37.32% based on the prior 2 quarters.
Woodland Hills Short Sale
Woodland Hills, CA
Residential
Strategy: Special Situation
Investment Type: Direct Investment
Woodland Hills Short Sale
Principals of Pierside Capital acquired a 3 bedroom 2 bath single family ranch style house in Woodland Hills, CA through a lender and owner approved short sale. After closing the property underwent a full interior and exterior renovation along with the replacement of a significant portion of the property’s roof. The home was later sold, generating an IRR of 86.4% and a multiple of invested capital of approximately 3.22x.